Lehman Brothers Mortgage-Backed Securities Index
An index made up of mortgage-backed securities that is used for benchmarking purposes. The Lehman Brothers MBS Index consists of fixed-rate securities, such as mortgage pools created by the Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corp (FHLMC) and Federal National Mortgage Association (FNMA). This index serves as a performance benchmark for many mortgage-backed securities funds. Investopedia Says:
For a mortgage-backed security to be included in the index, it must have a minimum principal amount of $50 million. The securities within the index have an average life between 15 and 30 years. The MBS Index is a subset of the Lehman Brothers Aggregate Bond Index, which includes a larger variety of benchmark bonds. Related Terms:
Benchmark
Fannie Mae - Federal National Mortgage Association - FNMA
Freddie Mac - Federal Home Loan Mortgage Corp - FHLMC
Ginnie Mae - Government National Mortgage Association - GNMA
Lehman Aggregate Bond Index
Mortgage-Backed Securities - MBS |